- Earnings per diluted share of $2.57
- Operating revenue down 5%
- Reportable derailment rate improved 9%
OMAHA,
Neb., July 26, 2023 /PRNewswire/ -- Union
Pacific Corporation (NYSE: UNP) today reported 2023 second quarter
net income of $1.6 billion, or
$2.57 per diluted share. These
results include the previously disclosed $67
million labor expense and $73
million income tax benefit. This compares to 2022 second
quarter net income of $1.8 billion,
or $2.93 per diluted share.
![Union Pacific. (PRNewsFoto/Union Pacific) (PRNewsfoto/Union Pacific) Union Pacific. (PRNewsFoto/Union Pacific) (PRNewsfoto/Union Pacific)](https://mma.prnewswire.com/media/328197/union_pacific_logo.jpg)
"The results this quarter were impacted by softening consumer
markets, inflation, a one-time labor expense, and increased
workforce levels," said Lance Fritz,
Union Pacific chairman, president, and chief executive officer.
"The entire team remains focused on maintaining a solid service
product while taking steps to recapture lost productivity and lay a
strong foundation for sustainable future success. We took actions
throughout the second quarter to drive greater network fluidity and
provide our customers with better service. We finished the quarter
with resource levels more aligned with demand, as we stored excess
locomotives, improved recrew rates, and reduced borrowed-out
employees."
Financial Results: Core Pricing Gains Offset by Reduced Fuel
Surcharge Revenue, Lower Volumes, and an Unfavorable Business
Mix
Second Quarter 2023 Compared to Second Quarter
2022
- Operating revenue of $6 billion
was down 5% driven by reduced fuel surcharge revenue, lower
volumes, and an unfavorable business mix, partially offset by core
pricing gains.
- Business volumes, as measured by total revenue carloads, were
down 2%.
- Operating ratio was 63.0%, up 280 basis points. This includes
an unfavorable 110 basis point impact from a one-time labor
agreement payment and a 200 basis point benefit from falling fuel
prices.
- Operating income of $2.2 billion
declined 12%.
- The company repurchased 600,000 shares in second quarter 2023
at an aggregate cost of $120
million.
Operating Performance: Improved Service Performance Supported
by Larger Crew Base
Second Quarter 2023 Compared to
Second Quarter 2022
- Quarterly freight car velocity was 202 daily miles per car, an
8% improvement.
- Quarterly locomotive productivity was 126 gross ton-miles
(GTMs) per horsepower day, a 2% improvement.
- Average maximum train length was 9,316 feet, a 1% decline.
- Quarterly workforce productivity decreased 5% to 983 car miles
per employee.
- Fuel consumption rate of 1.086, measured in gallons of fuel per
thousand GTMs, deteriorated 1%.
- Union Pacific's first half reportable derailment rate improved
9% to 2.45 per million train miles compared to 2.68 for 2022.
2023 Outlook Pressured by Challenging Demand and Cost
Environment
- Consumer-related volumes likely drive full year volume
expectations below Industrial Production (Current forecast:
+0.1%)
- Pricing dollars in excess of inflation dollars
- Forecasting $50 to $70 million in labor expense from new agreements
in second half of 2023
- 2023 Capital Allocation:
-
- Capital plan of $3.6 billion
- Maintain dividend of $1.30/quarter
- No further 2023 share repurchases planned
Leadership and Board Updates
In separate press releases issued today, the Company appointed
Jim Vena as chief executive officer,
named Beth Whited as president,
elected Mike McCarthy as chairman
and appointed two new independent directors, Doyle Simons, and John
Wiehoff, to the Board.
Second Quarter 2023 Earnings Conference Call
Union Pacific will webcast its second quarter 2023 earnings
release presentation live at www.up.com/investor and via
teleconference on Wednesday, July 26,
2023, at 8:45 a.m. Eastern
Time. Participants may join the conference call by dialing
877-407-8293 (or for international participants, 201-689-8349).
ABOUT UNION PACIFIC
Union Pacific (NYSE: UNP) delivers the goods families and
businesses use every day with safe, reliable, and efficient
service. Operating in 23 western states, the company connects its
customers and communities to the global economy. Trains are the
most environmentally responsible way to move freight, helping Union
Pacific protect future generations. More information about Union
Pacific is available at www.up.com.
Supplemental financial information is
attached.
This news release and related materials contain statements
about the Company's future that are not statements of historical
fact, including specifically the statements regarding the potential
impacts of public health crises, including pandemics, epidemics and
the outbreak of other contagious diseases, such as the coronavirus
and its variant strains (COVID); the Russia-Ukraine conflict and its impact on our
business operations, financial results, liquidity, and financial
position, and on the world economy (including customers, employees,
and supply chains), including as a result of fluctuations in volume
and carloadings; expectations as to general macroeconomic
conditions, including slowdowns and recessions, domestically or
internationally, and future volatility in interest rates and fuel
prices; closing of customer manufacturing, distribution, or
production facilities; expectations as to operational or service
improvements; expectations as to hiring challenges; availability of
employees; expectations regarding the effectiveness of steps taken
or to be taken to improve operations, service, infrastructure
improvements, and transportation plan modifications; expectations
as to cost savings, revenue growth, and earnings; the time by which
goals, targets, or objectives will be achieved; projections,
predictions, expectations, estimates, or forecasts as to business,
financial, and operational results, future economic performance,
and planned capital investments ; proposed new products and
services; estimates of costs relating to environmental remediation
and restoration; estimates and expectations regarding tax matters;
expectations that claims, litigation, environmental costs,
commitments, contingent liabilities, labor negotiations or
agreements, cyberattacks or other matters. These statements are, or
will be, forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements also generally
include, without limitation, information, or statements regarding:
projections, predictions, expectations, estimates, or forecasts as
to the Company's and its subsidiaries' business, financial, and
operational results, and future economic performance; and
management's beliefs, expectations, goals, and objectives and other
similar expressions concerning matters that are not historical
facts.
Forward-looking statements should not be read as a
guarantee of future performance or results and will not necessarily
be accurate indications of the times that, or by which, such
performance or results will be achieved. Forward-looking
information, including expectations regarding operational and
financial improvements and the Company's future performance or
results are subject to risks and uncertainties that could cause
actual performance or results to differ materially from those
expressed in the statement. Important factors, including risk
factors, could affect the Company's and its subsidiaries' future
results and could cause those results or other outcomes to differ
materially from those expressed or implied in the forward-looking
statements. Information regarding risk factors and other cautionary
information are available in the Company's Annual Report on Form
10-K for 2022, which was filed with the SEC on February 10, 2023. The Company updates
information regarding risk factors if circumstances require such
updates in its periodic reports on Form 10-Q and its subsequent
Annual Reports on Form 10-K (or such other reports that may be
filed with the SEC).
Forward-looking statements speak only as of, and are based
only upon information available on, the date the statements were
made. The Company assumes no obligation to update forward-looking
information to reflect actual results, changes in assumptions, or
changes in other factors affecting forward-looking information. If
the Company does update one or more forward-looking statements, no
inference should be drawn that the Company will make additional
updates with respect thereto or with respect to other
forward-looking statements. References to the Company's website are
provided for convenience and, therefore, information on or
available through the website is not, and should not be deemed to
be, incorporated by reference herein.
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES Condensed
Consolidated Statements of Income (unaudited)
|
|
Millions, Except Per
Share Amounts and
|
|
2nd
Quarter
|
|
|
Year-to-Date
|
|
Percentages, For the
Periods Ended June 30,
|
2023
|
|
|
2022
|
|
|
|
%
|
|
2023
|
|
|
2022
|
|
|
|
%
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freight
revenues
|
|
$
|
5,569
|
|
|
$
|
5,842
|
|
|
|
(5)
|
%
|
|
$
|
11,225
|
|
|
$
|
11,282
|
|
|
|
(1)
|
%
|
Other
revenues
|
|
|
394
|
|
|
|
427
|
|
|
|
(8)
|
|
|
|
794
|
|
|
|
847
|
|
|
|
(6)
|
|
Total operating
revenues
|
|
|
5,963
|
|
|
|
6,269
|
|
|
|
(5)
|
|
|
|
12,019
|
|
|
|
12,129
|
|
|
|
(1)
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
1,269
|
|
|
|
1,092
|
|
|
|
16
|
|
|
|
2,448
|
|
|
|
2,193
|
|
|
|
12
|
|
Fuel
|
|
|
664
|
|
|
|
940
|
|
|
|
(29)
|
|
|
|
1,430
|
|
|
|
1,654
|
|
|
|
(14)
|
|
Purchased services and
materials
|
|
|
650
|
|
|
|
622
|
|
|
|
5
|
|
|
|
1,303
|
|
|
|
1,183
|
|
|
|
10
|
|
Depreciation
|
|
|
577
|
|
|
|
559
|
|
|
|
3
|
|
|
|
1,149
|
|
|
|
1,114
|
|
|
|
3
|
|
Equipment and other
rents
|
|
|
248
|
|
|
|
230
|
|
|
|
8
|
|
|
|
483
|
|
|
|
445
|
|
|
|
9
|
|
Other
|
|
|
351
|
|
|
|
331
|
|
|
|
6
|
|
|
|
708
|
|
|
|
668
|
|
|
|
6
|
|
Total operating
expenses
|
|
|
3,759
|
|
|
|
3,774
|
|
|
|
-
|
|
|
|
7,521
|
|
|
|
7,257
|
|
|
|
4
|
|
Operating
Income
|
|
|
2,204
|
|
|
|
2,495
|
|
|
|
(12)
|
|
|
|
4,498
|
|
|
|
4,872
|
|
|
|
(8)
|
|
Other income,
net
|
|
|
93
|
|
|
|
163
|
|
|
|
(43)
|
|
|
|
277
|
|
|
|
210
|
|
|
|
32
|
|
Interest
expense
|
|
|
(339)
|
|
|
|
(316)
|
|
|
|
7
|
|
|
|
(675)
|
|
|
|
(623)
|
|
|
|
8
|
|
Income before income
taxes
|
|
|
1,958
|
|
|
|
2,342
|
|
|
|
(16)
|
|
|
|
4,100
|
|
|
|
4,459
|
|
|
|
(8)
|
|
Income tax
expense
|
|
|
(389)
|
|
|
|
(507)
|
|
|
|
(23)
|
|
|
|
(901)
|
|
|
|
(994)
|
|
|
|
(9)
|
|
Net
Income
|
|
$
|
1,569
|
|
|
$
|
1,835
|
|
|
|
(14)
|
%
|
|
$
|
3,199
|
|
|
$
|
3,465
|
|
|
|
(8)
|
%
|
Share and Per
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
|
$
|
2.58
|
|
|
$
|
2.93
|
|
|
|
(12)
|
%
|
|
$
|
5.25
|
|
|
$
|
5.51
|
|
|
|
(5)
|
%
|
Earnings per share -
diluted
|
|
$
|
2.57
|
|
|
$
|
2.93
|
|
|
|
(12)
|
|
|
$
|
5.24
|
|
|
$
|
5.50
|
|
|
|
(5)
|
|
Weighted average
number of shares - basic
|
|
|
608.7
|
|
|
|
625.6
|
|
|
|
(3)
|
|
|
|
609.6
|
|
|
|
628.9
|
|
|
|
(3)
|
|
Weighted average
number of shares - diluted
|
|
|
609.5
|
|
|
|
626.8
|
|
|
|
(3)
|
|
|
|
610.5
|
|
|
|
630.2
|
|
|
|
(3)
|
|
Dividends declared per
share
|
|
$
|
1.30
|
|
|
$
|
1.30
|
|
|
|
-
|
|
|
$
|
2.60
|
|
|
$
|
2.48
|
|
|
|
5
|
|
Operating
Ratio
|
|
|
63.0
|
%
|
|
|
60.2
|
%
|
|
|
2.8
|
pts
|
|
|
62.6
|
%
|
|
|
59.8
|
%
|
|
|
2.8
|
pts
|
Effective Tax
Rate
|
|
|
19.9
|
%
|
|
|
21.6
|
%
|
|
|
(1.7)
|
pts
|
|
|
22.0
|
%
|
|
|
22.3
|
%
|
|
|
(0.3)
|
pts
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES Freight Revenues
Statistics (unaudited)
|
|
|
|
2nd
Quarter
|
|
|
Year-to-Date
|
|
For the Periods
Ended June 30,
|
|
2023
|
|
|
2022
|
|
|
%
|
|
|
2023
|
|
|
2022
|
|
|
%
|
|
Freight Revenues
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
|
$
|
890
|
|
|
$
|
867
|
|
|
|
3
|
%
|
|
$
|
1,833
|
|
|
$
|
1,744
|
|
|
|
5
|
%
|
Fertilizer
|
|
|
183
|
|
|
|
183
|
|
|
|
-
|
|
|
|
369
|
|
|
|
363
|
|
|
|
2
|
|
Food &
refrigerated
|
|
|
255
|
|
|
|
271
|
|
|
|
(6)
|
|
|
|
518
|
|
|
|
538
|
|
|
|
(4)
|
|
Coal &
renewables
|
|
|
429
|
|
|
|
492
|
|
|
|
(13)
|
|
|
|
934
|
|
|
|
1,000
|
|
|
|
(7)
|
|
Bulk
|
|
|
1,757
|
|
|
|
1,813
|
|
|
|
(3)
|
|
|
|
3,654
|
|
|
|
3,645
|
|
|
|
-
|
|
Industrial chemicals
& plastics
|
|
|
545
|
|
|
|
557
|
|
|
|
(2)
|
|
|
|
1,081
|
|
|
|
1,077
|
|
|
|
-
|
|
Metals &
minerals
|
|
|
562
|
|
|
|
562
|
|
|
|
-
|
|
|
|
1,098
|
|
|
|
1,047
|
|
|
|
5
|
|
Forest
products
|
|
|
347
|
|
|
|
386
|
|
|
|
(10)
|
|
|
|
679
|
|
|
|
750
|
|
|
|
(9)
|
|
Energy &
specialized markets
|
|
|
632
|
|
|
|
586
|
|
|
|
8
|
|
|
|
1,245
|
|
|
|
1,138
|
|
|
|
9
|
|
Industrial
|
|
|
2,086
|
|
|
|
2,091
|
|
|
|
-
|
|
|
|
4,103
|
|
|
|
4,012
|
|
|
|
2
|
|
Automotive
|
|
|
625
|
|
|
|
561
|
|
|
|
11
|
|
|
|
1,212
|
|
|
|
1,062
|
|
|
|
14
|
|
Intermodal
|
|
|
1,101
|
|
|
|
1,377
|
|
|
|
(20)
|
|
|
|
2,256
|
|
|
|
2,563
|
|
|
|
(12)
|
|
Premium
|
|
|
1,726
|
|
|
|
1,938
|
|
|
|
(11)
|
|
|
|
3,468
|
|
|
|
3,625
|
|
|
|
(4)
|
|
Total
|
|
$
|
5,569
|
|
|
$
|
5,842
|
|
|
|
(5)
|
%
|
|
$
|
11,225
|
|
|
|
11,282
|
|
|
|
(1)
|
%
|
Revenue Carloads
(Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
|
|
197
|
|
|
|
195
|
|
|
|
1
|
%
|
|
|
399
|
|
|
|
400
|
|
|
|
-
|
%
|
Fertilizer
|
|
|
48
|
|
|
|
53
|
|
|
|
(9)
|
|
|
|
93
|
|
|
|
98
|
|
|
|
(5)
|
|
Food &
refrigerated
|
|
|
44
|
|
|
|
48
|
|
|
|
(8)
|
|
|
|
88
|
|
|
|
95
|
|
|
|
(7)
|
|
Coal &
renewables
|
|
|
203
|
|
|
|
202
|
|
|
|
-
|
|
|
|
419
|
|
|
|
427
|
|
|
|
(2)
|
|
Bulk
|
|
|
492
|
|
|
|
498
|
|
|
|
(1)
|
|
|
|
999
|
|
|
|
1,020
|
|
|
|
(2)
|
|
Industrial chemicals
& plastics
|
|
|
164
|
|
|
|
161
|
|
|
|
2
|
|
|
|
321
|
|
|
|
321
|
|
|
|
-
|
|
Metals &
minerals
|
|
|
210
|
|
|
|
205
|
|
|
|
2
|
|
|
|
398
|
|
|
|
387
|
|
|
|
3
|
|
Forest
products
|
|
|
55
|
|
|
|
63
|
|
|
|
(13)
|
|
|
|
107
|
|
|
|
127
|
|
|
|
(16)
|
|
Energy &
specialized markets
|
|
|
144
|
|
|
|
141
|
|
|
|
2
|
|
|
|
283
|
|
|
|
272
|
|
|
|
4
|
|
Industrial
|
|
|
573
|
|
|
|
570
|
|
|
|
1
|
|
|
|
1,109
|
|
|
|
1,107
|
|
|
|
-
|
|
Automotive
|
|
|
213
|
|
|
|
192
|
|
|
|
11
|
|
|
|
413
|
|
|
|
382
|
|
|
|
8
|
|
Intermodal
[a]
|
|
|
749
|
|
|
|
805
|
|
|
|
(7)
|
|
|
|
1,483
|
|
|
|
1,562
|
|
|
|
(5)
|
|
Premium
|
|
|
962
|
|
|
|
997
|
|
|
|
(4)
|
|
|
|
1,896
|
|
|
|
1,944
|
|
|
|
(2)
|
|
Total
|
|
|
2,027
|
|
|
|
2,065
|
|
|
|
(2)
|
%
|
|
|
4,004
|
|
|
|
4,071
|
|
|
|
(2)
|
%
|
Average Revenue
per Car
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
|
$
|
4,527
|
|
|
$
|
4,451
|
|
|
|
2
|
%
|
|
$
|
4,598
|
|
|
$
|
4,357
|
|
|
|
6
|
%
|
Fertilizer
|
|
|
3,830
|
|
|
|
3,437
|
|
|
|
11
|
|
|
|
3,978
|
|
|
|
3,701
|
|
|
|
7
|
|
Food &
refrigerated
|
|
|
5,740
|
|
|
|
5,770
|
|
|
|
(1)
|
|
|
|
5,851
|
|
|
|
5,703
|
|
|
|
3
|
|
Coal &
renewables
|
|
|
2,107
|
|
|
|
2,426
|
|
|
|
(13)
|
|
|
|
2,228
|
|
|
|
2,340
|
|
|
|
(5)
|
|
Bulk
|
|
|
3,568
|
|
|
|
3,642
|
|
|
|
(2)
|
|
|
|
3,657
|
|
|
|
3,574
|
|
|
|
2
|
|
Industrial chemicals
& plastics
|
|
|
3,336
|
|
|
|
3,455
|
|
|
|
(3)
|
|
|
|
3,368
|
|
|
|
3,351
|
|
|
|
1
|
|
Metals &
minerals
|
|
|
2,677
|
|
|
|
2,755
|
|
|
|
(3)
|
|
|
|
2,760
|
|
|
|
2,710
|
|
|
|
2
|
|
Forest
products
|
|
|
6,337
|
|
|
|
6,128
|
|
|
|
3
|
|
|
|
6,360
|
|
|
|
5,898
|
|
|
|
8
|
|
Energy &
specialized markets
|
|
|
4,388
|
|
|
|
4,161
|
|
|
|
5
|
|
|
|
4,398
|
|
|
|
4,189
|
|
|
|
5
|
|
Industrial
|
|
|
3,646
|
|
|
|
3,674
|
|
|
|
(1)
|
|
|
|
3,701
|
|
|
|
3,626
|
|
|
|
2
|
|
Automotive
|
|
|
2,928
|
|
|
|
2,919
|
|
|
|
-
|
|
|
|
2,935
|
|
|
|
2,780
|
|
|
|
6
|
|
Intermodal
[a]
|
|
|
1,471
|
|
|
|
1,711
|
|
|
|
(14)
|
|
|
|
1,521
|
|
|
|
1,641
|
|
|
|
(7)
|
|
Premium
|
|
|
1,794
|
|
|
|
1,943
|
|
|
|
(8)
|
|
|
|
1,829
|
|
|
|
1,864
|
|
|
|
(2)
|
|
Average
|
|
$
|
2,748
|
|
|
$
|
2,830
|
|
|
|
(3)
|
%
|
|
$
|
2,804
|
|
|
$
|
2,771
|
|
|
|
1
|
%
|
|
|
[a]
|
For intermodal
shipments each container or trailer equals one carload.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES Condensed
Consolidated Statements of Financial Position
(unaudited)
|
|
|
Jun.
30,
|
Dec.
31,
|
|
Millions, Except
Percentages
|
|
2023
|
|
|
2022
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
830
|
|
|
$
|
973
|
|
Short-term
investments
|
|
|
-
|
|
|
|
46
|
|
Other current
assets
|
|
|
2,922
|
|
|
|
2,933
|
|
Investments
|
|
|
2,524
|
|
|
|
2,375
|
|
Properties,
net
|
|
|
56,641
|
|
|
|
56,038
|
|
Operating lease
assets
|
|
|
1,651
|
|
|
|
1,672
|
|
Other
assets
|
|
|
1,465
|
|
|
|
1,412
|
|
Total assets
|
|
$
|
66,033
|
|
|
$
|
65,449
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Common Shareholders' Equity
|
|
|
|
|
|
|
|
|
Debt due within one
year
|
|
$
|
1,745
|
|
|
$
|
1,678
|
|
Other current
liabilities
|
|
|
3,504
|
|
|
|
3,842
|
|
Debt due after one
year
|
|
|
31,557
|
|
|
|
31,648
|
|
Operating lease
liabilities
|
|
|
1,217
|
|
|
|
1,300
|
|
Deferred income
taxes
|
|
|
13,069
|
|
|
|
13,033
|
|
Other long-term
liabilities
|
|
|
1,747
|
|
|
|
1,785
|
|
Total
liabilities
|
|
|
52,839
|
|
|
|
53,286
|
|
Total common
shareholders' equity
|
|
|
13,194
|
|
|
|
12,163
|
|
Total liabilities and
common shareholders' equity
|
|
$
|
66,033
|
|
|
$
|
65,449
|
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES Condensed
Consolidated Statements of Cash Flows (unaudited)
|
|
|
Year-to-Date
|
|
Millions, for the
Periods Ended June 30,
|
2023
|
|
2022
|
|
Operating
Activities
|
|
|
|
|
|
|
Net income
|
$
|
3,199
|
|
$
|
3,465
|
|
Depreciation
|
|
1,149
|
|
|
1,114
|
|
Deferred income
taxes
|
|
36
|
|
|
93
|
|
Other - net
|
|
(526)
|
|
|
(505)
|
|
Cash provided by
operating activities
|
|
3,858
|
|
|
4,167
|
|
Investing
Activities
|
|
|
|
|
|
|
Capital
investments*
|
|
(1,607)
|
|
|
(1,645)
|
|
Other - net
|
|
(67)
|
|
|
105
|
|
Cash used in investing
activities
|
|
(1,674)
|
|
|
(1,540)
|
|
Financing
Activities
|
|
|
|
|
|
|
Debt repaid
|
|
(1,664)
|
|
|
(1,664)
|
|
Debt issued
|
|
1,599
|
|
|
4,090
|
|
Dividends
paid
|
|
(1,588)
|
|
|
(1,556)
|
|
Share repurchase
programs
|
|
(705)
|
|
|
(3,473)
|
|
Net issued/(paid) of
commercial paper
|
|
19
|
|
|
(151)
|
|
Other - net
|
|
11
|
|
|
(42)
|
|
Cash used in financing
activities
|
|
(2,328)
|
|
|
(2,796)
|
|
Net change in cash,
cash equivalents, and restricted cash
|
|
(144)
|
|
|
(169)
|
|
Cash, cash equivalents,
and restricted cash at beginning of year
|
|
987
|
|
|
983
|
|
Cash, cash equivalents,
and restricted cash at end of period
|
$
|
843
|
|
$
|
814
|
|
Free Cash
Flow**
|
|
|
|
|
|
|
Cash provided by
operating activities
|
$
|
3,858
|
|
$
|
4,167
|
|
Cash used in investing
activities
|
|
(1,674)
|
|
|
(1,540)
|
|
Dividends
paid
|
|
(1,588)
|
|
|
(1,556)
|
|
Free cash
flow
|
$
|
596
|
|
$
|
1,071
|
|
|
|
*
|
Capital investments
include locomotive and freight car early lease buyouts of
$14 million in 2023 and $46 million in 2022.
|
**
|
Free cash flow is a
non-GAAP measure; however, we believe this measure is important to
management and investors in evaluating our financial performance
and measures our ability to generate cash without additional
external financing.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES Operating and
Performance Statistics (unaudited)
|
|
|
|
2nd
Quarter
|
|
|
Year-to-Date
|
|
For the Periods
Ended June 30,
|
|
2023
|
|
|
2022
|
|
|
%
|
|
|
2023
|
|
|
2022
|
|
|
%
|
|
Operating/Performance Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freight car velocity
(daily miles per car)*
|
|
|
202
|
|
|
|
187
|
|
|
|
8
|
%
|
|
|
199
|
|
|
|
192
|
|
|
|
4
|
%
|
Average train speed
(miles per hour)*
|
|
|
24.1
|
|
|
|
23.6
|
|
|
|
2
|
|
|
|
24.1
|
|
|
|
23.9
|
|
|
|
1
|
|
Average terminal dwell
time (hours)*
|
|
|
23.3
|
|
|
|
24.6
|
|
|
|
(5)
|
|
|
|
23.6
|
|
|
|
24.3
|
|
|
|
(3)
|
|
Locomotive productivity
(GTMs per horsepower day)
|
126
|
|
|
|
123
|
|
|
|
2
|
|
|
|
125
|
|
|
|
126
|
|
|
|
(1)
|
|
Gross ton-miles (GTMs)
(millions)
|
|
|
207,606
|
|
|
|
209,789
|
|
|
|
(1)
|
|
|
|
414,254
|
|
|
|
419,495
|
|
|
|
(1)
|
|
Train length
(feet)
|
|
|
9,316
|
|
|
|
9,439
|
|
|
|
(1)
|
|
|
|
9,238
|
|
|
|
9,321
|
|
|
|
(1)
|
|
Intermodal car trip
plan compliance (%)**
|
|
|
79
|
|
|
|
62
|
|
|
|
17
|
pts
|
|
|
76
|
|
|
|
67
|
|
|
|
9
|
pts
|
Manifest/Automotive car
trip plan compliance (%)**
|
64
|
|
|
|
56
|
|
|
|
8
|
pts
|
|
|
63
|
|
|
|
59
|
|
|
|
4
|
pts
|
Workforce productivity
(car miles per employee)
|
|
|
983
|
|
|
|
1,034
|
|
|
|
(5)
|
|
|
|
987
|
|
|
|
1,045
|
|
|
|
(6)
|
|
Total employees
(average)
|
|
|
32,060
|
|
|
|
30,715
|
|
|
|
4
|
|
|
|
31,766
|
|
|
|
30,452
|
|
|
|
4
|
|
Locomotive Fuel
Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average fuel price per
gallon consumed
|
|
$
|
2.86
|
|
|
$
|
4.03
|
|
|
|
(29)
|
%
|
|
$
|
3.04
|
|
|
$
|
3.48
|
|
|
|
(13)
|
%
|
Fuel consumed in
gallons (millions)
|
|
|
226
|
|
|
|
226
|
|
|
|
-
|
|
|
|
458
|
|
|
|
460
|
|
|
|
-
|
|
Fuel consumption
rate***
|
|
|
1.086
|
|
|
|
1.076
|
|
|
|
1
|
|
|
|
1.105
|
|
|
|
1.096
|
|
|
|
1
|
|
Revenue Ton-Miles
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
|
|
18,858
|
|
|
|
19,459
|
|
|
|
(3)
|
%
|
|
|
38,902
|
|
|
|
40,488
|
|
|
|
(4)
|
%
|
Fertilizer
|
|
|
2,953
|
|
|
|
3,115
|
|
|
|
(5)
|
|
|
|
6,089
|
|
|
|
6,266
|
|
|
|
(3)
|
|
Food &
refrigerated
|
|
|
4,514
|
|
|
|
4,257
|
|
|
|
6
|
|
|
|
9,057
|
|
|
|
8,959
|
|
|
|
1
|
|
Coal &
renewables
|
|
|
20,864
|
|
|
|
20,558
|
|
|
|
1
|
|
|
|
43,361
|
|
|
|
44,808
|
|
|
|
(3)
|
|
Bulk
|
|
|
47,189
|
|
|
|
47,389
|
|
|
|
-
|
|
|
|
97,409
|
|
|
|
100,521
|
|
|
|
(3)
|
|
Industrial chemicals
& plastics
|
|
|
7,214
|
|
|
|
7,685
|
|
|
|
(6)
|
|
|
|
14,305
|
|
|
|
15,244
|
|
|
|
(6)
|
|
Metals &
minerals
|
|
|
9,209
|
|
|
|
9,662
|
|
|
|
(5)
|
|
|
|
18,156
|
|
|
|
18,407
|
|
|
|
(1)
|
|
Forest
products
|
|
|
5,815
|
|
|
|
6,694
|
|
|
|
(13)
|
|
|
|
11,364
|
|
|
|
13,319
|
|
|
|
(15)
|
|
Energy &
specialized markets
|
|
|
9,817
|
|
|
|
9,105
|
|
|
|
8
|
|
|
|
19,316
|
|
|
|
18,171
|
|
|
|
6
|
|
Industrial
|
|
|
32,055
|
|
|
|
33,146
|
|
|
|
(3)
|
|
|
|
63,141
|
|
|
|
65,141
|
|
|
|
(3)
|
|
Automotive
|
|
|
4,687
|
|
|
|
4,140
|
|
|
|
13
|
|
|
|
9,087
|
|
|
|
8,287
|
|
|
|
10
|
|
Intermodal
|
|
|
17,567
|
|
|
|
18,710
|
|
|
|
(6)
|
|
|
|
35,687
|
|
|
|
36,628
|
|
|
|
(3)
|
|
Premium
|
|
|
22,254
|
|
|
|
22,850
|
|
|
|
(3)
|
|
|
|
44,774
|
|
|
|
44,915
|
|
|
|
-
|
|
Total
|
|
|
101,498
|
|
|
|
103,385
|
|
|
|
(2)
|
%
|
|
|
205,324
|
|
|
|
210,577
|
|
|
|
(2)
|
%
|
|
|
*
|
Surface Transportation
Board (STB) reported performance measures.
|
**
|
Methodology used to
report is not comparable with the reporting to the STB under
docket number EP 770.
|
***
|
Fuel consumption is
computed as follows: gallons of fuel consumed divided by gross
ton-miles in thousands.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES Condensed
Consolidated Statements of Income (unaudited)
|
|
|
2023
|
|
Millions, Except Per
Share Amounts and Percentages,
|
1st
Qtr
|
|
2nd
Qtr
|
Year-to-Date
|
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
|
Freight
revenues
|
$
|
5,656
|
|
$
|
5,569
|
|
$
|
11,225
|
|
Other
revenues
|
|
400
|
|
|
394
|
|
|
794
|
|
Total operating
revenues
|
|
6,056
|
|
|
5,963
|
|
|
12,019
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
1,179
|
|
|
1,269
|
|
|
2,448
|
|
Fuel
|
|
766
|
|
|
664
|
|
|
1,430
|
|
Purchased services and
materials
|
|
653
|
|
|
650
|
|
|
1,303
|
|
Depreciation
|
|
572
|
|
|
577
|
|
|
1,149
|
|
Equipment and other
rents
|
|
235
|
|
|
248
|
|
|
483
|
|
Other
|
|
357
|
|
|
351
|
|
|
708
|
|
Total operating
expenses
|
|
3,762
|
|
|
3,759
|
|
|
7,521
|
|
Operating
Income
|
|
2,294
|
|
|
2,204
|
|
|
4,498
|
|
Other income,
net
|
|
184
|
|
|
93
|
|
|
277
|
|
Interest
expense
|
|
(336)
|
|
|
(339)
|
|
|
(675)
|
|
Income before income
taxes
|
|
2,142
|
|
|
1,958
|
|
|
4,100
|
|
Income tax
expense
|
|
(512)
|
|
|
(389)
|
|
|
(901)
|
|
Net
Income
|
$
|
1,630
|
|
$
|
1,569
|
|
$
|
3,199
|
|
|
|
|
|
|
|
|
|
|
|
Share and Per
Share
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
$
|
2.67
|
|
$
|
2.58
|
|
$
|
5.25
|
|
Earnings per share -
diluted
|
$
|
2.67
|
|
$
|
2.57
|
|
$
|
5.24
|
|
Weighted average
number of shares - basic
|
|
610.6
|
|
|
608.7
|
|
|
609.6
|
|
Weighted average
number of shares - diluted
|
|
611.5
|
|
|
609.5
|
|
|
610.5
|
|
Dividends declared per
share
|
$
|
1.30
|
|
$
|
1.30
|
|
$
|
2.60
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Ratio
|
|
62.1
|
%
|
|
63.0
|
%
|
|
62.6
|
%
|
Effective Tax
Rate
|
|
23.9
|
%
|
|
19.9
|
%
|
|
22.0
|
%
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES Freight Revenues
Statistics (unaudited)
|
|
|
2023
|
|
|
1st
Qtr
|
|
2nd
Qtr
|
Year-to-Date
|
|
Freight Revenues
(Millions)
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
$
|
943
|
|
$
|
890
|
|
$
|
1,833
|
|
Fertilizer
|
|
186
|
|
|
183
|
|
|
369
|
|
Food &
refrigerated
|
|
263
|
|
|
255
|
|
|
518
|
|
Coal &
renewables
|
|
505
|
|
|
429
|
|
|
934
|
|
Bulk
|
|
1,897
|
|
|
1,757
|
|
|
3,654
|
|
Industrial chemicals
& plastics
|
|
536
|
|
|
545
|
|
|
1,081
|
|
Metals &
minerals
|
|
536
|
|
|
562
|
|
|
1,098
|
|
Forest
products
|
|
332
|
|
|
347
|
|
|
679
|
|
Energy &
specialized markets
|
|
613
|
|
|
632
|
|
|
1,245
|
|
Industrial
|
|
2,017
|
|
|
2,086
|
|
|
4,103
|
|
Automotive
|
|
587
|
|
|
625
|
|
|
1,212
|
|
Intermodal
|
|
1,155
|
|
|
1,101
|
|
|
2,256
|
|
Premium
|
|
1,742
|
|
|
1,726
|
|
|
3,468
|
|
Total
|
$
|
5,656
|
|
$
|
5,569
|
|
$
|
11,225
|
|
Revenue Carloads
(Thousands)
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
|
202
|
|
|
197
|
|
|
399
|
|
Fertilizer
|
|
45
|
|
|
48
|
|
|
93
|
|
Food &
refrigerated
|
|
44
|
|
|
44
|
|
|
88
|
|
Coal &
renewables
|
|
216
|
|
|
203
|
|
|
419
|
|
Bulk
|
|
507
|
|
|
492
|
|
|
999
|
|
Industrial chemicals
& plastics
|
|
157
|
|
|
164
|
|
|
321
|
|
Metals &
minerals
|
|
188
|
|
|
210
|
|
|
398
|
|
Forest
products
|
|
52
|
|
|
55
|
|
|
107
|
|
Energy &
specialized markets
|
|
139
|
|
|
144
|
|
|
283
|
|
Industrial
|
|
536
|
|
|
573
|
|
|
1,109
|
|
Automotive
|
|
200
|
|
|
213
|
|
|
413
|
|
Intermodal
[a]
|
|
734
|
|
|
749
|
|
|
1,483
|
|
Premium
|
|
934
|
|
|
962
|
|
|
1,896
|
|
Total
|
|
1,977
|
|
|
2,027
|
|
|
4,004
|
|
Average Revenue
per Car
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
$
|
4,668
|
|
$
|
4,527
|
|
$
|
4,598
|
|
Fertilizer
|
|
4,135
|
|
|
3,830
|
|
|
3,978
|
|
Food &
refrigerated
|
|
5,963
|
|
|
5,740
|
|
|
5,851
|
|
Coal &
renewables
|
|
2,341
|
|
|
2,107
|
|
|
2,228
|
|
Bulk
|
|
3,743
|
|
|
3,568
|
|
|
3,657
|
|
Industrial chemicals
& plastics
|
|
3,402
|
|
|
3,336
|
|
|
3,368
|
|
Metals &
minerals
|
|
2,853
|
|
|
2,677
|
|
|
2,760
|
|
Forest
products
|
|
6,384
|
|
|
6,337
|
|
|
6,360
|
|
Energy &
specialized markets
|
|
4,408
|
|
|
4,388
|
|
|
4,398
|
|
Industrial
|
|
3,760
|
|
|
3,646
|
|
|
3,701
|
|
Automotive
|
|
2,944
|
|
|
2,928
|
|
|
2,935
|
|
Intermodal
[a]
|
|
1,573
|
|
|
1,471
|
|
|
1,521
|
|
Premium
|
|
1,866
|
|
|
1,794
|
|
|
1,829
|
|
Average
|
$
|
2,861
|
|
$
|
2,748
|
|
$
|
2,804
|
|
|
|
[a]
|
For intermodal
shipments each container or trailer equals one carload.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES Non-GAAP Measures
Reconciliation to GAAP
|
|
Debt / Net
Income
|
|
|
|
|
|
|
|
|
Millions, Except
Ratios
|
|
Jun.
30,
|
|
|
Dec. 31,
|
|
for the Trailing
Twelve Months Ended [a]
|
|
2023
|
|
|
2022
|
|
Debt
|
|
$
|
33,302
|
|
|
$
|
33,326
|
|
Net income
|
|
|
6,732
|
|
|
|
6,998
|
|
Debt / net
income
|
|
|
4.9
|
|
|
|
4.8
|
|
Adjusted Debt /
Adjusted EBITDA*
|
|
|
|
|
|
|
|
|
Millions, Except
Ratios
|
|
Jun.
30,
|
|
|
Dec.
31,
|
|
for the Trailing
Twelve Months Ended [a]
|
|
2023
|
|
|
2022
|
|
Net income
|
|
$
|
6,732
|
|
|
$
|
6,998
|
|
Add:
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
1,981
|
|
|
|
2,074
|
|
Depreciation
|
|
|
2,281
|
|
|
|
2,246
|
|
Interest
expense
|
|
|
1,323
|
|
|
|
1,271
|
|
EBITDA
|
|
$
|
12,317
|
|
|
$
|
12,589
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
|
(493)
|
|
|
|
(426)
|
|
Interest on operating
lease liabilities [b]
|
|
|
53
|
|
|
|
54
|
|
Adjusted
EBITDA
|
|
$
|
11,877
|
|
|
$
|
12,217
|
|
Debt
|
|
$
|
33,302
|
|
|
$
|
33,326
|
|
Operating lease
liabilities
|
|
|
1,563
|
|
|
|
1,631
|
|
Unfunded pension and
OPEB, net of tax cost of $0 and $0
|
|
|
-
|
|
|
|
-
|
|
Adjusted
debt
|
|
$
|
34,865
|
|
|
$
|
34,957
|
|
Adjusted debt /
Adjusted EBITDA
|
|
|
2.9
|
|
|
|
2.9
|
|
|
|
[a]
|
The trailing twelve
months income statement information ended June 30, 2023, is
recalculated by taking the twelve months ended December 31, 2022,
subtracting the six months ended June 30, 2022, and
adding the six months ended June 30, 2023.
|
[b]
|
Represents the
hypothetical interest expense we would incur (using the incremental
borrowing rate) if the property under our operating leases were
owned or accounted for as finance leases.
|
|
|
*
|
Total debt plus
operating lease liabilities plus after-tax unfunded pension and
OPEB (other postretirement benefit) obligations divided by net
income plus income tax expense, depreciation, amortization,
interest expense, and adjustments for other income and interest on
operating lease liabilities. Adjusted debt to adjusted EBITDA
(earnings before interest, taxes, depreciation, amortization, and
adjustments for other income and interest on operating lease
liabilities) is considered non-GAAP financial measure by
SEC Regulation G and Item 10 of SEC Regulation S-K and may not be
defined and calculated by other companies in the same manner. We
believe this measure is important to management and
investors in evaluating the Company's ability to sustain given debt
levels (including leases) with the cash generated from operations.
In addition, a comparable measure is used by rating agencies when
reviewing the Company's credit rating. Adjusted debt to adjusted
EBITDA should be considered in addition to, rather than as a
substitute for, other information provided in accordance with GAAP.
The most comparable GAAP measure is debt to net income
ratio. The tables above provide a
reconciliation from net income to adjusted EBITDA, debt to
adjusted debt, and debt to net income to adjusted debt to adjusted
EBITDA. At June 30, 2023, and December 31, 2022, the incremental
borrowing rate on operating lease liabilities was 3.4%
and 3.3%, respectively.
|
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SOURCE Union Pacific Corporation